Markets opened marginally lower on Tuesday morning, with the Sensex down 25.28 points or 0.03 per cent at 84,753.56 and the Nifty trading nearly flat at 25,968.70, up 2.65 points or 0.01 per cent, as traders adopted a cautious stance ahead of the October F&O expiry and the crucial Trump-Xi summit scheduled for October 30.
The Sensex, which closed at 84,778.84 in the previous session, opened at 84,625.71, while the Nifty opened at 25,939.95, against its previous close of 25,966.05. Market sentiment remained cautiously optimistic, supported by expectations of progress in US-China trade negotiations and hopes of a Federal Reserve rate cut following softer inflation data.
“The broader tone for Indian markets remains cautiously bullish, supported by better-than-expected Q2 earnings and steady domestic institutional flows that continue to underpin market momentum,” said Ponmudi R, CEO of Enrich Money. “However, lingering uncertainty around the India–US trade deal is tempering expectations, prompting bouts of profit-booking at higher levels as investors weigh near-term risks against the strong underlying fundamentals.”
Metal stocks led the gainers in early trade, with surging 2.07 per cent to ₹180.31 and advancing 1.92 per cent to ₹857.00. rose 1.29 per cent to ₹1,927.60, while gained 0.95 per cent to ₹6,972.00. rounded off the top gainers, climbing 0.72 per cent to ₹1,158.90.
On the losing side, declined 1.03 per cent to ₹1,363.40, emerging as the top loser on the Nifty50. fell 0.88 per cent to ₹2,151.00, while dropped 0.69 per cent to ₹1,076.95. Bharat Electronics Ltd shed 0.55 per cent to ₹412.85, and IndiGo slipped 0.50 per cent to ₹5,806.00.
“Market sentiment remains upbeat, supported by five catalysts: a softer US CPI boosting rate cut hopes, prospects of a US–China trade deal, FII inflows in recent sessions, record-high Wall Street indices, and a strong start to Q2 earnings,” said Prashanth Tapse, Senior VP (Research), Mehta Equities. “All eyes are now on Nifty’s all-time peak of 26,277.35, with the index likely to reclaim and close above the 26,100 mark.”
The banking sector showed a mixed performance, with the Bank Nifty exhibiting relative strength and holding above key support levels. “The Bank Nifty continues to exhibit relative strength, with immediate resistance seen near 58,250,” Ponmudi R noted. “A decisive breakout above this level could propel the index toward 58,500–58,800, reinforcing bullish momentum.”
Foreign Institutional Investors turned mild sellers, offloading equities worth ₹55 crore on October 27, according to Amruta Shinde, Technical & Derivative Analyst at Choice Equity Broking. However, Domestic Institutional Investors continued their strong support, purchasing equities worth ₹2,492 crore on the same day, providing crucial underpinning to the market.
“There are indications of a possible agreement between US and China on tariffs and if there is a breakthrough in the Trump-Xi meeting on Thursday, that will give another leg-up to the markets globally,” said Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments. “The only concern is the relatively high valuations in India, which might prompt the FIIs to again turn sellers if the market makes a smart rally.”
In commodities, gold and silver came under pressure, slipping below key psychological levels of $4,000 and $47 per ounce respectively, driven by a stronger dollar and renewed optimism over trade discussions. “However, rupee weakness support bullion prices at lower,” said Rahul Kalantri, VP Commodities, Mehta Equities. Crude oil prices remained steady as traders awaited the US-China presidential meeting outcome, with support from US sanctions on Russian oil companies.